The Indian government has announced that under the Comprehensive Economic Partnership Agreement (CEPA), which came into force on May 1, 2022, it will import up to 160 tonnes of gold from the UAE at special prices in fiscal year 2024-25.
As part of the agreement, India has committed to importing up to 200 tonnes of gold per year from the UAE with a 1 percent tariff concession under the Tariff Rate Quota (TRQ), News.Az reported citing foreign media.
India notified 140 tonnes last fiscal year and 160 tonnes for 2024-25, the official added.
Think tank GTRI said in a June report that India’s gold imports from the UAE grew 147.6 percent from $3 billion in FY23 to $7.6 billion in FY24, and called for a review of the agreement.
India’s gold imports, which impact India’s current account deficit (CAD), are expected to fall 4.23 per cent to USD 12.64 billion between April 2024 and July 2025 due to uncertainties in the global economy, according to government data.
India’s gold imports, which impact India’s current account deficit (CAD), are expected to fall 4.23 per cent to USD 12.64 billion between April 2024 and July 2025 due to uncertainties in the global economy, according to government data.
In its budget proposal, the government reduced customs duties on gold and silver from 15% to 6%.
In 2023-24, India’s gold imports are expected to grow by 30% to US$ 45.54 billion.
Switzerland is the largest gold importer, with a share of around 40 percent, followed by the UAE (more than 16 percent) and South Africa (around 10 percent).
News.AZ